Question: Using the general pricing theory, F0 > S0ert , which best explains our arbitrage strategy? I. We should short the spot, invest the proceeds whilst

Using the general pricing theory, F0 > S0ert , which best explains our arbitrage strategy? I. We should short the spot, invest the proceeds whilst simultaneously buying the futures or forward contract to arbitrage our profit. II. We should borrow dollars and buy the spot whilst simultaneously selling the futures or forward contract to arbitrage our profit. - I. -neither -II. -both

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